Resources Activities Costs - How to Build a Startup

Summary

In this final lecture, the focus is on key resources in the business model canvas. It delves into identifying the most crucial assets, such as finance, physical resources, intellectual property, and human resources, that are essential for a business to function. The discussion highlights the strategic importance of these resources, including considerations for location and specialization, emphasizing the need for a thoughtful approach to resource management as the business grows.

Takeaways

• 🎓 The lecture concludes the business model canvass discussion, focusing on key resources, activities, and costs.
• 💼 Key resources are the most important assets required for a business model to function effectively.
• 💰 Finance is a primary concern for startups, with discussions on funding through credit cards or small business loans.
• 🏭 Physical resources like manufacturing lines, machines, and vehicles are essential for operational success.
• 📄 Intellectual property is critical for defending a company's position in the market.
• 🧠 Human resources are vital, with a focus on identifying the best scientists, programmers, or engineers for the business.
• 🌐 Geographic considerations are important for sourcing talent, such as having headquarters in Silicon Valley while hiring engineers from other countries.
• 🏢 Strategic location decisions for headquarters and manufacturing plants can impact costs and operations.
• 🤔 The importance of thinking through resources is highlighted, as they may become increasingly problematic over time if not addressed.
• 🔄 The script encourages a strategic approach to resource planning, suggesting multiple cycles of strategy when starting a company.

Q & A

What is the main topic of the final lecture?

The main topic of the final lecture is discussing resources, activities, and costs within the context of the business model canvas.

What is the business model canvas?

The business model canvas is a strategic management tool that provides a visual representation of the key elements of a business model, including value propositions, customer segments, channels, customer relationships, revenue streams, key resources, key activities, and key partners.

What is the primary concern for every startup according to the lecture?

The primary concern for every startup is finance, which includes how to get the company started and whether it can be done on credit cards or through a small business loan.

What are some examples of physical resources mentioned in the lecture?

Examples of physical resources mentioned include a manufacturing line, machines, cars, and vehicles.

Why is intellectual property important for a business model?

Intellectual property is important for a business model because it helps in defending the company's unique position in the market and can be a critical asset.

What is the significance of human resources in a business model?

Human resources are significant because they include the specialized skills and talents, such as scientists, programmers, or engineers, that are essential for the operation and success of the business.

Why is the strategic location of resources important for a business?

The strategic location of resources is important because it can impact the accessibility of talent, cost of operations, and overall efficiency of the business.

What does the lecture suggest about the approach to key resources?

The lecture suggests taking a strategic approach to key resources, considering factors such as location, cost, and the specific needs of the business.

What is the potential issue with not considering resources strategically?

Not considering resources strategically can lead to bigger problems over time, such as increased operational costs or difficulties in accessing necessary skills or assets.

What advice does the lecture give regarding the strategic cycles for a startup?

The lecture advises giving at least a couple of cycles of strategic thought when starting a company to ensure that all aspects of the business model, including resources, are well-planned.

How does the lecture relate key resources to the overall success of a business model?

The lecture relates key resources to the overall success of a business model by emphasizing that these resources are the most important assets required for the business model to function effectively.

Outlines

00:00

💼 Key Resources in Business Models

This paragraph delves into the concept of key resources, which are essential assets required to operationalize a business model. It highlights the importance of financial resources for startups, the necessity of physical resources like manufacturing lines and vehicles, and the significance of intellectual property for defending a business's position. The paragraph also touches on the human resources aspect, emphasizing the need for specialized skills such as scientists, programmers, or engineers, and the strategic location of these resources, whether in a tech hub like Silicon Valley or other regions with a concentration of talent. The speaker encourages a strategic approach to resource allocation, suggesting that this consideration should be revisited periodically as the company grows.

Keywords

💡Resources

Resources refer to the assets and inputs necessary for the operation and success of a business model. In the video, they are identified as the most important assets required for the business model to function effectively. Examples include financial resources like credit or loans, and physical resources such as manufacturing lines and vehicles.

💡Business Model Canvas

The Business Model Canvas is a strategic management tool used to describe, design, and analyze the key components of a business model. It is mentioned in the script as something the audience is already familiar with, indicating its importance in understanding the various aspects of a business, including value propositions, customer segments, and revenue streams.

💡Value Propositions

Value Propositions are the benefits or reasons why customers would choose a particular product or service. They are part of the Business Model Canvas and are essential for attracting and retaining customers. The script implies that the audience has previously discussed this concept in the context of the business model.

💡Customer Segments

Customer Segments represent the different groups of people or organizations that a business targets with its offerings. The script suggests that the audience has already been introduced to this concept as part of the Business Model Canvas, highlighting its importance in understanding who the business serves.

💡Channels

Channels refer to the various methods a business uses to reach its customers, such as through retail stores, online platforms, or direct sales. The script briefly mentions channels as part of the Business Model Canvas, indicating their role in the distribution strategy of a business.

💡Customer Relationships

Customer Relationships describe the ways in which a business interacts with its customers to build loyalty and retention. The script mentions this as an element of the Business Model Canvas, suggesting that the nature of these relationships is crucial for the success of a business model.

💡Revenue Streams

Revenue Streams are the sources of income generated by a business. The script notes that they have previously discussed this concept, indicating that understanding how a business plans to make money is a key component of the Business Model Canvas.

💡Partners

Partners are external entities that a business collaborates with to achieve mutual goals. The script mentions that they have 'jumped ahead' to discuss partners, indicating that partnerships are an important aspect of a business model, often contributing to its success through shared resources and capabilities.

💡Key Resources

Key Resources are the essential assets that a business must have in place to operate and execute its business model. The script focuses on this concept, discussing the importance of identifying and securing these resources, such as financial capital, physical assets, intellectual property, and human resources.

💡Intellectual Property

Intellectual Property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, images, and phrases used in commerce. In the script, IP is highlighted as a potential key resource that can be critical for defending a business's position in the market.

💡Human Resources

Human Resources encompass the people who work for a company and the organizational policies that define how they are managed. The script discusses the importance of identifying the specific types of human expertise needed, such as scientists, programmers, or engineers, and where to find them, which is crucial for the execution of a business model.

Highlights

Introduction to the final lecture on resources, activities, and costs.

Familiarity with the business model canvas is assumed.

Discussion on value propositions, customer segments, channels, and customer relationships.

Advance discussion on partners and the importance of key resources.

Key resources defined as the most important assets for business model execution.

The perpetual concern for startups: finance and funding.

Options for startup funding: credit cards, small business loans.

Importance of physical resources like manufacturing lines and vehicles.

Intellectual property as a critical asset for business defense.

The role of human resources: the need for top scientists, programmers, or engineers.

Strategic consideration of resource location for competitive advantage.

Example of strategic resource placement: Silicon Valley headquarters with engineers elsewhere.

The impact of resource decisions on long-term business growth.

The importance of an actual approach to resource strategy in the startup phase.

The need for iterative cycles of strategy refinement during company inception.

The inevitability of resource issues becoming more prominent over time.

The significance of strategic thinking in resource allocation from the outset.

Transcripts

Today, we're going to talk about resources, activities, and costs, and congratulations,

this is your last lecture. By now, you're intimately familiar with the business model canvass.

We've talked about value props, customer segments, channels, customer relationships,

revenue streams. We jumped ahead and talked about partners, and right now, we're going to talk

about key resources. And for key resources, the real question is what are your most important assets

to make your business model happen? Let see what are some most important assets?

What are the most important things that are required to make your business model work?

For every startup, the thing you're always worried about is money, finance.

How do you get the company started? Can you do that on your credit cards? Can you line a credit

to a small business loan or then physical resources. You need a manufacturing line.

You need machines. You need cars. You need vehicles. And, how about intellectual property?

Or pets? Critical to defending your position or is it customerless? Or should people?

And then that kind of get us into what are the key human resources you need to make this happen?

Is it the world's best scientists? Or programmers? Or engineers? Is there a specific area in the

country that has a concentration of them. And, so when you think about resources some of these

are just kind of natural. All you have will hire a bunch of engineers and we'll have a building, etc.

But actually, you could think about the strategic way. She is impossible to have headquarters in

one place like Silicon Valley, but great engineers back in our country somewhere in Finland or

Chile or Russia or these are physical manufacturing plant that is located in the United States or

do we need to put it in a place for lower cost manufacturer. And, so all these resources are the

things that you really need to think through even though what they want they might not seem

important. It just gets to be a bigger and bigger problem overtime. If you have an actual approach

to this dose of strategy at least giving it a couple of cycles when you start your company.